Stock market today: Sensex, Nifty fall over 1% each for 2nd day in a row; investors lose over ₹7 lakh crore in 2 days

The fresh escalation of tensions between Iran and Israel spooked investors as concerns grew that it would disrupt the global supply of commodities, including crude oil and some industrial metals, resulting in a rise in already sticky inflation. 

This will also mean that the prospects of Fed rate cuts, which are evident to be delayed beyond June, could be further delayed.

Also Read: 5 biggest concerns around Iran-Israel tensions that could impact Indian stock market

Indian stock market benchmark Sensex opened with a cut of 930 points at its day’s low level of 73,315.16, against its previous close of 74,244.90. The 30-share index finally closed 845 points, or 1.14 per cent, lower at 73,399.78.

The Nifty 50 opened 180 points lower at 22,339.05 against its previous close of 22,519.40 and extended losses to fall as much as 260 points, to hit the day’s low of 22,259.55. The index closed 247 points, or 1.10 per cent, lower at 22,272.50.

The mid and smallcap indices suffered deeper losses. The BSE Midcap index fell 1.50 per cent while the Smallcap index declined 1.54 per cent.

The overall market capitalisation of BSE-listed firms on Monday stood at nearly ₹394.7 lakh crore. Last Thursday, the overall market capitalisation of BSE-listed firms was nearly ₹402.2 lakh crore. This means in just two days, investors got poorer by about ₹7.5 lakh crore.

Investors lost nearly ₹5 lakh crore in just one day as in the previous session, BSE-listed firms’ cumulative market capitalisation was nearly ₹399.7 lakh crore.

Also Read: Iran-Israel Tensions: How do they impact Indian stock market? Here’s what experts say

Only six stocks – ONGC, Hindalco, Maruti, Nestle, Britannia and Bharti Airtel – managed to end in the green in the Nifty 50 index on Monday.

Shares of Shriram Finance, Wipro, ICICI Bank, Bajaj Finance and Bajaj Finserv ended as the top losers in the Nifty 50 index.

Also Read: Top Gainers and Losers today on 15 April, 2024: Oil & Natural Gas Corporation, Hindalco Industries, Shriram Finance, Bajaj Finserv among most active stocks; Check full list here

Among the sectoral indices, only Nifty Oil & Gas (up 0.41 per cent) ended higher.

Nifty Bank (down 1.63 per cent), PSU Bank (down 1.98 per cent) and Private Bank (down 1.66 per cent) fell almost 2 per cent each.

Nifty Media (down 2.23 per cent), Financial Services (down 1.75 per cent), and IT (down 1.58 per cent), also lost significantly.

What weighs on market sentiment?

While the escalation of geopolitical tensions was a major cause of the selloff in the Indian stock market on Monday, April has been volatile so far for the domestic stock market amid concerns over its rich valuation in the absence of fresh positive triggers. 

The hotter-than-expected US inflation numbers have dealt a blow to market expectations of a rate cut by the US Fed in June, strengthening the US dollar and bond yields and triggering an outflow of money from riskier equities.

Short term market outlook

The market is expected to see some volatility in the near term due to geopolitical as well as domestic events.

“We expect domestic markets to witness near-term headwinds amid rising volatility. With the start of result season and poll promises by several political parties, we may continue to see sector and stock-specific action. Globally, investors will keenly watch out for US core retail sales and China Q1 GDP numbers which will be released late today for further cues,” said Khemka.

On the technical front, Tejas Shah of JM Financial and BlinkX, observed that the Nifty closed below the crucial support levels of 22,500 which is not a healthy sign. The break of 22,500 on a closing basis on the daily charts with volumes and a strong momentum has weakened the setup and that has to be taken note of.

“A level of 22,250 is immediate support to watch out for in the Nifty, while the bigger area of support zone stands at 22,000-22,100. On the higher side, the immediate resistance for Nifty is at the 22,350 level and the next crucial resistance is at 22,500. Overall, the Nifty is likely to remain volatile within the 22,000 – 22,500 range in the near term with a negative bias,” said Shah.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 15 Apr 2024, 03:31 PM IST